* FTSEurofirst 300 up 0.2 pct
* Officials deny that IMF has withdrawn from talks
* Profit warning hits Zodiac Aerospace shares
* European equities still seeing weekly inflows (Recasts, adds detail, quote)
By Alistair Smout and Lionel Laurent
LONDON, June 12 (Reuters) - European stock edged up on Friday as officials played down concerns a Greek debt deal may not be reached while Germany’s Angela Merkel expressed confidence in the euro zone’s easy monetary policy.
That kept European equities on track for their first weekly gain in three weeks as investors bet a recent bond-driven sell-off had gone too far. Weekly inflows into European equities remained in positive territory, according to broker data.
The pan-European FTSEurofirst 300 index was 0.2 percent higher at 15,60.89 by 1015 GMT, recovering from early falls.
European stocks had opened lower after International Monetary Fund announced that its delegation had left negotiations over Greece in Brussels and flown home because of major differences with Athens.
However, they rallied sharply into positive territory, as traders took reassurance from comments from a German spokesperson and the EU’s Juncker saying that the IMF had not broken off negotiations.
Greece’s Athex index was down 2.3 percent, having been down as much as 4.2 percent earlier in the session.
The index dipped after rallying 8 percent on Thursday, on growing hopes a deal could be reached.
“Given the recent news on Greece we think that slow but positive steps are being made,” Atif Latif, director of trading at Guardian Stockbrokers, said.
“The outlook (has gone) from being bleak to more realistic in terms of what the end result might be in terms of concessions.”
European shares also received support from a weaker euro, which sank below $1.12 after German Chancellor Merkel expressed concerns that the benefit of reforms in Spain and Ireland may not be felt were the euro to be strong.
The aerospace sector was a drag on markets ahead of the Paris Air Show next week, with Zodiac Aerospace shares slumping 4.6 percent after a profit warning linked to seat manufacturing delays. Airbus Group was down 0.5 percent after its chief was cited as confirming 2015 goals.
At a time when a revival in mergers and acquisitions is buoying global equities, not all companies are promoting deal-making: German ATM maker Wincor Nixdorf fell 2 percent after its chief told a German newspaper he was not interested in the company being bought.
Meanwhile, UK clothing brand Ted Baker rose 2 percent after it reported a rise in first-quarter revenues.
Europe bourses in 2015: link.reuters.com/pap87v
Asset performance in 2015: link.reuters.com/gap87v
Today’s European research round-up (Editing by Hugh Lawson)